Question

Pankaj and Amit were in need of funds temporarily. On August 01, 2020 Pankaj drew upon

Amit a bill for Rs. 7500 for 3 months. Amit accepted the bill and returned to Pankaj. Pankaj

discounted the Bill @ 12% p.a. from Bank. Half amount of the discounted bill was immediately

remitted to Amit. On due date, Pankaj sent the required sum to Amit, who met the bill.

Journalise the transaction in the books of both the parties.​

Answer 1

Answer:

Pankaj and Amit were in need of funds temporarily. On August 01, 2020 Pankaj drew upon

Amit a bill for Rs. 7500 for 3 months. Amit accepted the bill and returned to Pankaj. Pankaj

discounted the Bill @ 12% p.a. from Bank. Half amount of the discounted bill was immediately

remitted to Amit. On due date, Pankaj sent the required sum to Amit, who met the bill.

Journalise the transaction in the books of both the parties.